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College is a time when many of us signed up for our first bank account. Often schools set up agreements with financial companies to offer cards and accounts to their students. Today, some students can use their student ID card to pay for everything from washing a load of laundry to shopping online.

With credit cards, financial companies have to publicly disclose these types of agreements with schools. However, we know less about these arrangements when it comes to other things, like debit cards to access your student loan funds and student checking accounts. We’ve heard from students that sometimes these arrangements are a convenience, while other times we’ve heard that they didn’t feel they had a choice. We want to see if students are getting a good deal and what schools can do to help them through the process.

That’s why we need your help. We want to hear about your experience with financial products designed for college students.

Email us at CFPB_StudentsFedReg@cfpb.gov by March 18 to tell us about any aspect of your experience .

Today, we’re launching an initiative on student cards and bank accounts and we want your input. We’ve published a Notice and Request for Information Regarding Financial Products Marketed to Students Enrolled in Institutions of Higher Education in the Federal Register. The title might sound a little formal, but the reality is simple: we want to hear from you.

We’ll use your comments to work with school officials on ways they can make sure that schools and students are getting off on the right foot when it comes to managing their money during college. We’ll also publish a summary for everyone who contributes and let you know how you can continue to help make sure the market is working for everyone.

Tell us your two cents today, and learn more about the CFPB’s work for students.

When you take out a mortgage loan to buy a home, you trust the mortgage servicing industry to work. Mortgage servicers are responsible for sending you bills, processing your payments, answering your questions, and addressing any problems that may arise. When servicers fall down on the job, that can have serious consequences for consumers. People who are behind on their mortgages may not know what options they have. Bills may show up with unexpected and expensive charges. People who need more information may not be able to get it in a timely manner.

Today we are issuing two new rules to make this market work better for America’s homeowners. Director Cordray announced them this morning in Atlanta.

When we proposed these rules back in August, we said we wanted to put the service back in mortgage servicing. The two final rules we’re issuing today are designed to do just that. The result of these new rules will be a market with fewer surprises and runarounds for mortgage borrowers.

Here’s some of what’s new:

Space for consumers to pursue alternatives to foreclosure

Borrowers fall behind on mortgage payments for a variety of reasons. Sometimes they can make up these payments quickly. Sometimes they need to figure out an alternative payment strategy. Sometimes they face the loss of their homes. But in any of these circumstances, they should know what avenues are available to them.

Restrictions on dual tracking: Dual tracking is the term used when servicers move forward on a foreclosure at the same time they’re working with the borrower to avoid foreclosure. Many consumers report that they have discovered too late that they were foreclosed on by the same servicer they were working with to find an alternative. Under the new rules, servicers cannot begin foreclosure proceedings against you until your payments are 120 days behind.

Pursuing modifications and other loss mitigation: The dual tracking restrictions give you time to assess your situation and apply for a modification or other option that may be available to help you. If you apply within the 120-day window, the servicer cannot begin foreclosure until your application has been addressed. If you and your servicer come to an agreement on an option, the servicer cannot start foreclosure proceedings unless you don’t uphold your end of the agreement. Even if you apply after you’re already facing foreclosure, your servicer cannot complete the foreclosure while your application is pending so long as you submit it at least 38 days before the foreclosure sale is scheduled.

Regular, clear communication from servicers

Who services your mortgage, how to get in touch with them, and what you owe should not be mysterious. The new rules include requirements to improve the communication from servicers to mortgage borrowers.

A periodic statement for homeowners: One of the new requirements defines a periodic statement for residential mortgages. The statement comes every billing cycle and covers basics like an explanation of the amount due, payment and transaction history, account information, and contact information for the servicer. It doesn’t apply to some mortgage types (like reverse mortgages), but it does apply to most home purchases and refinancings. The servicer does not have to provide you with a monthly statement if you have a fixed rate loan and pay with a coupon book, but the information that would be on the monthly statement needs to be available to you.

Early outreach when a borrower falls behind: If you become delinquent, the servicer has to make a good faith effort to reach out to you. The servicer also has to assign people to your case and make those people available by phone so you have a clear and consistent point of contact.

Warnings before interest rate adjustments: If you take out an adjustable rate mortgage, the servicer must notify you about the first interest rate adjustment at least seven months in advance of when you owe a payment at the adjusted interest rate. The servicer has to provide an estimate of the new interest rate and payment amount, alternatives available to you, and how to access a HUD-approved mortgage counselor. In addition, for the first interest rate adjustment, and all subsequent rate adjustments that result in a different payment amount, servicers must send you an additional advance notice telling you what your new payment will be.

Managing information and processing payments

Good information and good records: Servicers should provide correct information about mortgage loans, whether that’s to a borrower, an investor, or a court during foreclosure. The new rules require policies and procedures to ensure servicers can provide accurate and timely information about the mortgage. They must keep records on all mortgages they service for a year after someone pays off a mortgage or after someone else takes over servicing the mortgage.

Crediting payments in a timely manner: When you make a full payment, the servicer must credit it to your account as of that day. If you request a payoff statement in writing, the servicer has seven business days to issue the statement.

Error resolution: When there’s a mistake, you should be able to get it fixed in a timely manner. If you write to your servicer to address what you believe to be an error, the servicer should reply in a timely manner. The new rules set timelines and procedures for servicers to investigate and correct errors.

Force-placed insurance

Force-placed insurance is insurance that the servicer buys on the property when the borrower no longer has property insurance. Without insurance, whoever holds the mortgage would be at risk if the house were to be damaged or destroyed. But the borrower may actually be responsible for the costs of the force-placed insurance policy. This has led to unexpected or duplicate expenses for people who already have their own insurance policies. Under the new rules, servicers need a reasonable basis to believe borrowers lack their own insurance, and they must determine this on a case-by-case basis. The servicer also has to notify the borrower before purchasing the force-placed insurance policy and annually before renewing the policy.

These rules take effect early in 2014, along with three of the rules we issued last week. We’ve developed a page for the new rules where you can learn more about the new rules, including a detailed summary. Watch the page for new resources to help you understand the rules and their implications in the days to come.

Join us for a field hearing on mortgage policy on Thursday, Jan. 17, 2013, featuring remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.

11 a.m. EST
Rialto Center for the Arts
Georgia State University
80 Forsyth Street
Atlanta, GA

To RSVP, email cfpb.events@cfpb.gov with:

• Your full name
• Your organizational affiliation (if any)

We were in Mountain View, CA for the launch of Project Catalyst.

The live event has ended. CFPB Director Richard Cordray announced the launch of Project Catalyst to encourage consumer-friendly innovation. You can read CFPB Director Cordray’s remarks.

If you missed the event, you can watch below:

Americans up and down the East Coast are still coping with the devastation of Hurricane Sandy. Power outages, food shortages, and long lines at the gas pump are affecting millions of families.

In the days following a disaster of this magnitude, your first priorities are the safety of you and your family, and meeting your day-to-day needs. But as help arrives and rebuilding begins, it is important to take smart and decisive steps to start putting your life back together.

The checklist below will help guide you through some of the financial decisions you will need to make in the coming weeks.

As soon as possible

•  If your home, car or property was damaged by the storm, contact your insurance company to start the claims process.
• Ask for a copy of your insurance policy if you don’t have one available. It will help you verify your coverage.
• Damage to your home does not stop your responsibility to pay your mortgage. However, many mortgage servicers have been told they can help homeowners affected by the storm. So you should contact your mortgage servicer and tell them about your situation.
• If you don’t have a monthly mortgage statement or coupon book with you, search the Mortgage Electronic Registration Systems (MERS) or call them toll-free at (888) 679-6377 to find the company that services your mortgage.
• Take a look at your income and savings and determine how much money you have available to pay bills and creditors.
• If your income is interrupted and you don’t think you will be able to pay your credit cards or other loans, be sure to contact your lenders as soon as possible. Explain your situation and when you think you will be able to resume normal payments. The important thing is to make the calls before your next payments are due.
• If you are in a presidentially declared disaster area, you may qualify for disaster assistance. Check with the Federal Emergency Management Agency (FEMA) for more information.
• If your home is damaged to the point that you can’t live in it, contact your utility companies and ask to suspend your service. This could help free up money in your budget for other expenses
• Take a look at your bills and set priorities. Your mortgage, rent and insurance payments should stay high on your list.

As you rebuild

• Be careful if you choose to hire a public adjuster to help with your insurance claim. Be sure the adjuster is licensed to do business in your state. Also watch out for these red flags:
  • Big upfront fees. Don’t pay a lot before you know if the adjuster is going to help you. Many states put a limit on fees.
  • References to contractors who can help. Dishonest adjusters will sometimes work with contractors that give them kickbacks.
  • False or inflated claims. This is fraud against the insurance company.
  • Asks for a suspicious amount of personal information. Some con artists may pose as adjusters to steal your personal information.
• Get bids from several local, established contractors. And avoid contractors who:
  • Are working door to door
  • Come from out of state
  • Don’t provide an address and phone number, or refuse to show identification
• Ask if the contractor has the required licenses, and get license numbers.
• Check with your state licensing agency’s website or hotline to make sure the licenses are valid.
• Ask the licensing agencies if the contractor has a history of complaints.

Contractor don’ts

• Don’t pay in advance.
• Don’t pay in cash.
• Don’t sign anything before carefully reading it.
• Don’t provide personal financial information, such as your checking account, credit card or debit card numbers.
• If you have to borrow to pay for repairs, don’t let the contractor steer you toward a particular lender.

For more details, including tips to avoid other forms of fraud, learn how to protect and rebuild after a disaster.

As a result of today’s order, Discover will pay approximately $200 million in restitution to more than 3.5 million consumers.

How will consumers be refunded?

Anyone affected by this order will automatically receive a credit to their account, or, if they’re no longer a Discover customer, they’ll receive a check in the mail or have any outstanding balance reduced by the amount of the refund.

Consumers don’t need to take any further action to receive their credit or check.

If you have questions about whether you are entitled to a refund, please contact Discover.

As with any time large numbers of consumers get refunds, scammers sometimes pop up. Watch out for anyone who tries to charge you, tries to get you to disclose your personal information, or asks you to cash a check and send a portion to a third party in order to “claim your refund.” It’s a scam. Call us at (855) 411-CFPB.